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4 years ago

8

The texas instruments company has 9 percent coupon bonds on the market with seven years left to maturity. the bonds make annual

payments. if the bond currently sells for $874.60, what is its ytm?

1 answer:

lilavasa [31]4 years ago

3 0

To Calculate YTM,

YTM = {C + (F-P)/n}/(F+P)/2

where C = coupon rate,

F = face value

P = price

n = no.of years

Therefore, YTM = {90+(1000-874.6)/7}/(1000+874.6)/2

=> 11.72%

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Answer:

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Answer:

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3 years ago

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3 years ago

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